John Cucinella Subject of SEC Action Following Securities Fraud Conviction

John Cucinella (CRD #: 2614279), a broker formerly registered with Meyers Associates, is the subject of a pending SEC action, according to his BrokerCheck record, accessed on May 23, 2023. Read on to learn more about his alleged conduct as a broker.

Pending SEC Action

On March 17, 2023, the Securities and Exchange Commission filed a regulatory action against John Cucinella.

The SEC alleged that John Cucinella pleaded to one count of securities fraud on August 8, 2019, and was sentenced to 30 months of imprisonment and 3 years of supervised release on October 13, 2021. He was allegedly also ordered to pay $989,665.77 in restitution.

Specifically, John Cucinella allegedly pleaded guilty to a count of criminal information which claimed that he defrauded investors and obtained money and property by making materially false and misleading statements. He allegedly admitted to the following:

• Working at Mackrow Asset Management Group and soliciting potential investors across multiple states
• Obtaining investors’ funds through false statements, including by claiming the money would be invested in initial public offerings (IPOs) that did not exist
• Misappropriated some funds for personal expenses and invested funds in ways contrary to what he claimed
• Charged investors excessive fees, markups, and commissions that he failed to adequately disclose

This regulatory action is currently pending.

FINRA Rule 2020

The misrepresentation or omission of information related to investments violates FINRA Rule 2020, which bans the use of deception, manipulation, and other fraudulent tactics to influence the purchase and sale of securities.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Illinois Regulatory Action

On May 28, 2020, the Illinois Securities Department alleged that John Cucinella falsely represented to investors (many of whom were allegedly elderly) that their funds would be used to invest in pre-IPO shares of private companies.

Between approximately March 2015 and April 2018, John Cucinella allegedly transferred more than $400,000 from a Mackrow Asset Management Group (Mackrow) account to his own bank accounts. He allegedly spent these funds on personal charges, including approximately $108,000 for credit card payments and $40,000 at a Mercedes-Benz dealership.

The Securities Department further alleged that investors, who in total invested approximately $778,000 with Mackrow, had not received full restitution at the time of the Department’s filing of this action.

The Securities Department entered a consent order with John Cucinella prohibiting him from engaging in violations of relevant state securities laws.

Oklahoma Regulatory Action

On February 22, 2019, the Oklahoma Department of Securities alleged that John Cucinella offered and sold unregistered securities without being registered with the Department. He was ordered to cease and desist and to pay restitution of $6,039.

Michigan Regulatory Action

On January 23, 2019, the State of Michigan filed a regulatory action against John Cucinella alleging that he offered and sold investment contract securities to an investor in Michigan without a relevant exception from the registration requirements of the Michigan Uniform Securities Act.

In addition to allegedly acting as an unregistered agent of a broker-dealer, John Cucinella allegedly also omitted material facts to clients.

For example, he allegedly omitted the fact that he would make unauthorized trades and Mackrow would consider the trades to be authorized unless the client objected within three days of receiving a trade confirmation.

Additionally, he allegedly misrepresented an investment as a “sure thing” and failed to inform the client of the risk involved.

The state alleges that John Cucinella violated the following sections of the Michigan Uniform Securities Act: MCL 451.2301, MCL 451.2402(1), and MCL 451.2501(b). This regulatory action remains pending.

Michigan Uniform Securities Act

MCL 451.2301 prohibits the offer or sale of securities that are not federal covered securities, registered under the Act, or exempt from registration under the Act.

MCL 451.2402(1) requires individuals to register as an agent before transacting securities business in the state.

MCL 451.2501(b) forbids brokers from making untrue statements or misleading omissions of material fact.

What are Blue Sky Laws?

Blue sky laws are state securities regulations that provide investors with an extra layer of protection against fraud. They frequently also define what investments qualify as securities in the state.

FINRA Rule 3260

Unauthorized trading violates FINRA Rule 3260, which limits brokers to exercising their trading discretion in pre-approved discretionary accounts.

Missouri Regulatory Action

On August 22, 2018, the State of Missouri alleged that John Cucinella, Mackrow Asset Management Group, and Runnstarr Asset Management Group offered and/or sold unregistered and non-exempt securities in the state, in violation of Section 409.3-301 of the Revised Statutes of Missouri.

John Cucinella was prohibited from engaging in violations of Section 409.3-301 and permanently barred from acting as a broker, registered investment adviser (RIA), or agent in Missouri, starting on August 22, 2018.

He also consented to monetary sanctions of $15,000 and $2,500, and restitution of $4,872.83.

Missouri Revised Statutes

Section 409.3-301 of the Revised Statutes of Missouri prohibits the sale or offers of unregistered securities and securities not exempt from registration, as well as non-federal covered securities.

Alabama Regulatory Action

On October 31, 2017, the Alabama Securities Commission alleged that John Cucinella and other individuals offered stock and promised “exaggerated returns” to an Alabama resident while unregistered in the state. John Cucinella was ordered to cease and desist.

Background Information

John Cucinella has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

He previously worked for the following firms:

• Meyers Associates (CRD#:34171)
• Southeast Investments, N.C. (CRD#:43035)
• Cape Securities (CRD#:7072)
• Aura Financial Services (CRD#:42822)
• Newbridge Securities (CRD#:104065)
• GunnAllen Financial (CRD#:17609)
• Schneider Securities (CRD#:16434)
• Abbey-Ashford Securities (CRD#:17650)
• TAJ Global Equities (CRD#:31768)
• Meyers Pollock Robbins (CRD#:13436)
• Commonwealth Associates (CRD#:20833)

Kurta Law Can Help

If you worked with John Cucinella and you have concerns about your investments, contact a New York investment fraud lawyer today for a free case evaluation. Call (877) 600-0098 or email info@kurtalawfirm.com.   

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.